Royal Caribbean Cruises posts strong Q1 growth and maintains optimistic 2026 earnings forecast despite fuel cost challenges

Royal Caribbean Cruises reported strong bookings and net yield growth in Q1, overcoming rising fuel prices to deliver robust financial results. The company maintains a double-digit earnings growth forecast for 2026, with EPS expected at $17.30, slightly below prior guidance despite higher fuel costs. It plans to limit capacity growth to 5% annually through 2029, focusing on river cruises and disciplined supply to support pricing and growth. The stock remains undervalued with a forward P/E of 13.5x, presenting a potential buying opportunity after recent gains.